Given an MPC of 0

question 310

Multiple Choice

Given an MPC of 0.80, if there are no income taxes or imports and prices are constant, then when investment increases by $50 million, when prices are fixed equilibrium GDP would

• A) increase by $400 million.
• B) increase by $50 million.
• C) increase by $250 million.
• D) To answer the question more information on income is needed.

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Definitions:

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the tissues of the body and returns carbon dioxide from the tissues to the lungs.

Antibodies

Proteins produced by the immune system that recognize and bind to specific foreign substances called antigens to neutralize or destroy them.

Histamine

A compound found in body cells that plays a major role in allergic reactions, acting as a neurotransmitter and involved in the regulation of stomach acid.

Allergic Responses

Immune system reactions to certain substances, called allergens, that are normally harmless to most people.